Software-as-a-service allows users to access a company’s services through internet or web-based application, but how profitable can this business model be? This concept is not new. SaaS is expected to grow by 20% in the next three years and it will soon take over traditional business representations usually done face-to-face.
To make your SaaS profitable to continue growing your business, there are specific things that need to be considered, such as catering to a particular market with a software solution that addresses a need in the industry. Here are the four top tips to creating a SaaS offer that will increase your revenue.
Choose a Viable Problem to Solve
Many businesses fail because they try to integrate into a market that is already saturated with providers and services all catering to the same issue. If you want your business to be successful, you need to stand out, and this means identifying a problem people didn’t know they had to begin with. SaaS is considered to be closely connected with business-to-business strategy, and your offer should focus on engaging entrepreneurs and business owners rather than the general public.
Think about business processes and manufacturing procedures that could benefit from solutions such as time management, customer support, and an improvement in software functions.
Sell Trial Versions
The beauty of SaaS is that it’s online and easily accessible by anyone who frequents the internet. One way to increase revenue is to offer a trial to customers before they purchase a subscription. More people are likely to try out a service or application if they know there is no compulsory financial investment on their end. Customers want to know that they are being taken care of and that they won’t be left to their own devices once the sale has gone through.
Trials should also include free training sessions to demonstrate how the software works and ensure that you have support staff available to attend to any questions or concerns. This is likely to bring in recurring revenue as you secure more business through this type of customer service.
Survey the Industry
Perform customer research and focus group sessions to understand if your SaaS is a service that people will want at the end of the day. Your company cannot be successful if your service is based on assumptions and playing the guessing game as to what the industry needs. Unless you have a SaaS offering that you know 100% is what people need to improve their business function, you are shooting your business down before it even begins.
This means validating your offer by talking to prospective customers and other business owners to understand if there is even a market for your SaaS before you embark on your new creation.
When creating your SaaS, it’s important to ensure that when people search the web for products related to your service, your business is one of the first ones to appear on the page. This also includes making your SaaS accessible with a mobile device. It’s expected that by 2025, three-quarters of the world’s population will use their smartphone more than a computer or laptop to access information, including business functions.
The best way to use SEO to your advantage is to have relevant knowledge about your SaaS. Many SaaS business owners will have a great idea in mind but lack the foundational knowledge to properly market their product.
Most of the more successful SaaS products have been integrated with other businesses where each will assist the other in some way. Keep this in mind because other business owners may be eager to scratch your back in exchange for you providing a service. This creates great pot